§ 27-8-8-18 — Advertising referring to association; association summary document

(a) A person, including a member insurer,
insurance producer, employee, agent, or affiliate of a member insurer,
shall not make, publish, disseminate, circulate, or place before the
public or cause, directly or indirectly, to be made, published,
disseminated, circulated, or placed before the public, in any newspaper,
magazine, or other publication, or in the form of a notice, circular,
pamphlet, letter, or poster, or over any radio station or television
station, or in any other way, an advertisement, an announcement, or a
statement, written or oral, that uses the existence of the association for
the purpose of the sale of, solicitation of, or inducement to purchase
any form of insurance covered by this chapter. This section does not
apply to the association or any other entity that does not sell or solicit
insurance.
(b) The association shall:
(1) prepare a summary document:
(A) describing the general purposes and current limitations of
this chapter; and
(B) complying with subsection (c); and
(2) submit the summary document to the commissioner for
approval.
Sixty (60) days after the date on which the commissioner approves the
summary document, a member insurer may not deliver a policy or
contract to a policy or contract owner unless the summary document is
delivered to the policy or contract owner at the time of delivery of the
policy or contract. The summary document must also be available upon
request by a policy owner. The distribution, delivery, or contents or
interpretation of the summary document does not guarantee that the
policy or contract or the owner of the policy or contract is covered in
the event of the impairment or insolvency of a member insurer. The
summary document must be revised by the association as amendment
to this chapter requires. Failure to receive the summary document does
not give a policy owner, a contract owner, a certificate holder, or an
insured greater rights than the rights specified in this chapter.
(c) The summary document prepared under subsection (b) must
contain a clear and conspicuous disclaimer on the face of the summary
document. The commissioner shall approve the form and content of the
disclaimer. The disclaimer must, at a minimum, convey all the
following:
(1) State the name and address of the association and the
department of insurance.
(2) Prominently warn that:
(A) the association might not cover the policy or contract; and
(B) even if coverage were currently provided, coverage is:
(i) subject to substantial limitations and exclusions;
(ii) generally conditioned on continued residence in Indiana;
and
(iii) subject to possible change as a result of future
amendments to this chapter and court decisions.
(3) State the types of policies for which the association currently
provides coverage.
(4) State that the member insurer and the member insurer's agents
are prohibited by law from using the existence of the association
for the purpose of selling, soliciting, or inducing purchase of any
form of insurance.
(5) State that the policy owner or contract owner should not rely
on coverage under this chapter when selecting an insurer.
(6) Explain:
(A) rights available following; and
(B) procedures for filing a complaint to allege;
a violation of any provision of this chapter.
(7) Provide other information as directed by the commissioner,
including sources for information that:
(A) is not proprietary; and
(B) is subject to disclosure under IC 5-14-3;
concerning the financial condition of an insurer.
(d) A member insurer shall retain evidence of compliance with
subsection (b) until the policy or contract for which the notice is given
is no longer in effect.
As added by Acts 1978, P.L.129, SEC.3. Amended by
P.L.178-2003, SEC.62; P.L.193-2006, SEC.31; P.L.208-2018,
SEC.25.